? Coldwell Banker Realtor Kalama Kim talks home prices on the latest Real Estate of Mind. He compares the numbers then and now.
Topic: Home Prices Then and Now
·Last month we hit a record High on Oahu for Median Sales Prices ($700,000 Homes and $360,000 condos/townhomes)
·We frequently hear how our parents or previous generations bought their homes for low prices because prices have risen over time. For example, my parents said they bought their first home for less than $50,000 in Kaneohe in the 1970’s.
oMedian Sales Price – 1987 –$185,000 and $104,500
oMedian Sales Price – 1997 - $308,000 and $148,000
oMedian Sales Price – 2007 - $685,000 and $334,000
·One of the causes for the recent increase in home prices are the low rates allowing buyers to qualify for more.
oTo illustrate that fact, if a buyer is working with a $2,500 budget a 1% change in rates affects their purchasing power by $57,000.
·Another reason for the recent increase in prices is the low levels of inventory.
oMonths remaining inventory for homes in June was 2.8 months. That means at the current rate of sales if no new homes came on the market for sale, everything would be sold out in 85 days.